Weekly Trading Forecasts for Major Pairs (May 14 - 18, 2018)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards last week, testing the support line at 1.1850. Several attempts to breach the support line to the downside were not successful, and as such price bounced upwards by 100 pips from the line. The upwards bounce is seen as an opportunity to buy at slightly higher prices because the outlook on the market remains bearish, and price may continue going further downwards, eventually breaching the adamant support line at 1.1850 to the downside.


USDCHF
Dominant bias: Bullish
In the context of an uptrend this trading instrument went sideways last week, ranging between the resistance level at 1.0000 (previously a support level) and the resistance level at 1.0050. Eventually, price closed below the resistance level at 1.0000 on Friday, and it may even test the support levels at 0.9950 and 0.9900. However, price would rise again, possibly reaching the resistance level at 1.0000 and breaching it to the upside.

GBPUSD
Dominant bias: Bearish
The current bearish trend started in April 17, and what happened last week was just a pause the bearish trend. The pause was a consolidation throughout last week; thus a breakout is imminent, which would most probably favor bears. The accumulation territory at 1.3500, which had been tested before, would soon be breached to the downside, as price targets other accumulation territories at 1.3450 and 1.3400.
USDJPY
Dominant bias: Bullish
The bias on the market is bullish – and the trend is still in a precarious position. Price did not go in a strong directional movement last week. It only oscillated between the demand level at 109.00 and the supply level at 110.00. A breach above the supply level at 110.00 is anticipated this week, although bulls may not be able to enjoy that victory for a long time, because there is a possibility of a fall back towards the demand level at 109.00.
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EURJPY
Dominant bias: Bearish
In a bearish outlook, price trended downwards on Monday and Tuesday, and then started to make a rally effort. It managed to close above the demand zone at 130.50 on Friday, in the context of a downtrend. Unless the Euro gets strengthened considerably, there might be a reversal in favor of bears, which would enable the market to target the demand zones at 130.50, 130.00 and 129.50.

GBPJPY
Dominant bias: Bearish
This cross was characterized by a zigzag movement throughout last week, although that did not affect the current Bearish Confirmation Pattern in the market. This week, price is supposed to continue moving further and further south (as soon as the current short-term trendlessness ends). The demand zone at 147.50 was tested last week, before price rallied a bit further. The demand zones at 147.50, 147.00 and 146.50 may be tested this week

This forecast is concluded with the quote below:

“Of course, most traders enjoy the process of building up profits, the satisfaction of adept trading, or simply outwitting the crowd. But it is not just the outcome that is important, it is also the process.” – Andy Jordan


Source: www.tallinex.com